Abstract:
In this study, we investigate the mediating role of ambidexterity in the relationship of entrepreneurial orientation on innovation. We see that entrepreneurial orientation enables firms to employ heterogeneity, creativity, experimentation, dynamic capabilities that leverage internal and external capabilities in addressing changing environment. However, all the good things from entrepreneurial orientation should be transferred into beneficial activities that can improve innovation.
By this study, we found that ambidexterity (exploitation and exploration) capabilities can absorb the beneficial values from EO and transform them into innovation.
